According to a new study, Paris could overtake Berlin in the coming years when it comes to investments in start-ups. In 2018, start-ups in the French capital attracted almost 2.5 billion euros in investment - 39 percent more than in 2017. In Berlin, start-ups attracted 12 percent less fresh money, according to an analysis published on Tuesday by the consulting firm EY.
At 2.6 billion euros, Berlin was thus only just ahead in terms of the volume of investments. In 2017, the VC gap between Berlin and Paris was still substantial at 1.2 billion euros. In terms of the number of deals, Paris (366) was already ahead of Berlin (244).
"French politicians have the clear goal of making France the number one start-up nation in Europe," said EY partner Peter Lennartz. Although there are fewer major deals there from corporations or funds that put money into promising start-ups, overall the financing is better than in Germany, according to the study that dpa has seen.
Great Britain still remains the undisputed leader in Europe, with London-based start-ups attracting 5 billion euros last year. In Germany, start-ups often find it difficult to find injections of large sums to help them expand. The development bank KfW estimates the financing gap in the early growth phase to be up to 600 million euros per year. The German government wants to help promote the start-up culture, for example with state-supported venture capital funds.
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